RBI/2010-11/181
A.P. (DIR Series) Circular No.09
August 25, 2010
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 5.763 million
to the Government of Suriname
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated
March 22, 2010 with the Government of Suriname making available to the latter, a
Line of Credit (LOC) of USD 5.763 million (USD five million seven hundred sixty
three thousand) for financing eligible goods and services, including consultancy
services, from India for the purpose of purchase of helicopters from Hindustan
Aeronautics Limited. The goods and services including consultancy services from
India for exports under this Agreement are those which are eligible for export
under the Foreign Trade Policy of the Government of India and whose purchase may
be agreed to be financed by the Exim Bank under this Agreement. Out of the total
credit by Exim Bank under this Agreement, the goods and services of the value of
at least 85 per cent of the contract price shall be supplied by the seller from
India, and the remaining 15 per cent goods and services (other than consultancy
services) may be procured by the seller for the purpose of Eligible Contract
from outside India.
- The Credit Agreement under the LOC is effective from July 28, 2010
and the date of execution of Agreement is March 22, 2010. Under the LOC, the
last date for opening of Letters of Credit and Disbursement will be 48
months from the scheduled completion date(s) of contract(s) in the case of
project exports and 72 months (March 21, 2016) from the execution date of
the Credit Agreement in the case of supply contracts.
- Shipments under the LOC will have to be declared on GR / SDF Forms as per
instructions issued by the Reserve Bank from time to time.
- No agency commission is payable under the above LOC. However, if
required, the exporter may use his own resources or utilize balances in his
Exchange Earners’ Foreign Currency Account for payment of commission in free
foreign exchange. Authorised Dealer Category- l (AD Category-l) banks may
allow such remittance after realization of full payment of contract value
subject to compliance with the prevailing instructions for payment of agency
commission.
- AD Category-I banks may bring the contents of this circular to the notice
of their exporter constituents and advise them to obtain full details of the
Line of Credit from Exim Bank’s office at Centre One, Floor 21, World Trade
Centre Complex, Cuffe Parade, Mumbai 400 005 or log on to
www.eximbankindia.in.
- The directions contained in this circular have been issued under sections
10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of
1999) and are without prejudice to permissions / approvals, if any, required
under any other law.
Yours faithfully,
(G. Jaganmohan Rao)
Chief General Manager